In Ledbetter, the Supreme Court dismissed a gender discrimination suit alleging unequal pay after determining that the plaintiff failed to comply with Title VII's 180-day statute of limitations. The key issue before the Court was the timing of the alleged discrimination. Ledbetter argued that each paycheck constituted a new discriminatory act. In a 5-4 decision the Court disagreed, holding that the employer's initial decision to pay Ledbetter less than her male colleagues started the statute of limitations clock.

The Ledbetter Act would reverse the Court's interpretation of the applicable statute of limitations. Under the Act, an unlawful employment practice may occur either (a) when the employer adopts a discriminatory compensation scheme, or (b) when an employee is "affected" by the application of a discriminatory compensation scheme. An employee is affected by such a practice "each time wages, benefits, or other compensation is paid." These alterations will make it easier for plaintiffs to maintain discrimination suits alleging unequal pay.

The Ledbetter Act was first introduced in Congress in 2007 but died without reaching a floor vote in the Senate. According to an article in Monday's New York Times, Democrats are confident that they now have the votes to defeat a filibuster. President-Elect Obama co-sponsored the Ledbetter Act in 2007.

If you have questions about the Ledbetter Act or any new legislation in the labor and employment fields, please contact any member of the Labor and Employment Department at Frost Brown Todd.